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Art's REAL life Fozzy adventure

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  • First Post: Mar 19, 2007 5:33am Mar 19, 2007 5:33am
G'day all,

Well after forward testing the original Fozzy method (via the Fozzy EA v2.2) since the start of the year with decent results, I decided it was time to enter the real world - I opened a live mini account with IBFX (trading micro lots to start with).

I didn't have to wait long for my first trade, and it took all of 1hr and 11mins to notch up my first loss! The only saving grace for me was the fact that I didn't like the original SL picked by the system (78 pips) because it was too much for my 3% rule, so I reduced it to 50pips. As it turned out it was a good move. My SL got taken out but the pair kept on going, swallowing the original SL and then some!

Now I fully understand what people mean when they say that until you trade a live account you haven't really traded. Remember, I'm trading micro lots and have single figure values at risk in any one trade yet, by my emotions this morning you'd think I had thousands riding on this one trade.

In the lead-up to the trade being taken I could see the setup. But, should I take this trade? Why am I questioning the system now? Of course I should take the trade. But the SL is wider than I am comfortable with. OK, reduce it but do it for a purpose not just because you can. The trade immediately goes against me. Damn. Ok what now? Nothing, just let it be. -20. -30. Ok I need to go out. I'll check when I get back. Damn. SL hit. -$8.90. Hmm, I could maybe get some of that back if it falls again. I'll put a sell limit order and if it retraces I'll be back in and get some of my losses back. No I won't. I'm trading the Fozzy system. It's a DAILY system. Today is gone as far as the system is concerned. See you tomorrow.

The range of emotions is amazing to behold. But, I'm now in the real game and I have to stick to my rules or I'm gonna get thrown out on my arse!

19/3/07 - USDJPY Short @ 116.38 - SL hit @ 116.90 (-52)

Cheers,
Art...
Art, I've felt that same feeling myself.

Watching your money go up and down in real time is an emotional experience.

My advice is to feel fully confident in your system before you trade it. If you need to, do more backtesting and forward testing. Kharvell lost a 300+ pip GBP/JPY trade the other day, but didn't seem phased by it. You just have to know that all systems will go through losses and drawdowns.

The key question is, are the drawdowns low and the profit factor high?
I look forward to following your trades. What do you think about putting this in the Fozzy Forum? We would need a mod to do it.
Taking Life One Pip At A Time I officially have my own opinion.
G'day Mike,

Quoting MikeC
I look forward to following your trades. What do you think about putting this in the Fozzy Forum? We would need a mod to do it.
That's upto the higher powers. I'm not fussed one way or the other. I will be making trades and posting them here but not as it happens. The trades will be posted that same evening though. So, technically it's a trade journal but it will make no difference to me as to how I post.

Cheers,
Art...
Artamon....

Are you using the Fozzy 2.2 EA?

What pairs are you trading? Thanks for sharing your journal.
Don Life is expensive, but includes a free trip around the sun.
Hi Art....

Thanks for being willing to share your trading experiences with us! I hope you continue with "The Daily Fozzy" method, taking ALL the trades that your version of this system indicates.......and continuing to trade with micro lots. There's nothing like the "feel" of loosing $$$ as an important part of Forex training. I can't speak about using the Fozzy EA, because I don't. But the method works very well when properly managed. All the best!
Artamon,why not figure your pips in with your 3% rule then it wouldnt matter. say u have $1000 account your risk is 75 pips,the 3% rule would be $30. so 30/75 would give u 40 cents a pip then it wouldnt matter, but i just wanted to wish u luck on your journey!!!!!!!!!
G'day all,

Firstly, thanks for the comments.

Attached you will find a list of pairs, the trades and the results. This is over the 8 weeks I forward tested the EA. I used v2.2 of the EA. As a consequence of the results, for starters I will only be trading the pairs I have marked in green (ie. AUDUSD, AUDJPY, CHFJPY, EURJPY, GBPJPY, USDJPY). It's very yen-centric I know, but they have been the best performers. There were a couple of others I considered but I didn't want to get overwhelmed when just starting out. If everything goes to plan I will add them later.

I am using v2.2 EA to get me into the trade (using original Fozzy rules but with 0.7x ATR SL). From there I will endeavour NOT to mess with the trade and let it do what it's supposed to do. However, I will be checking where it is in relation to the Vegas tunnel and Daily PP. If I don't like the trade I will not take it. I'm all for letting the EA run, but not at the expense of my account balance!

With the recent huge ranges some pairs give me a SL in excess of 100 which I'm just not comfortable with. When this happens I will reduce the SL to be a little bit past the Daily support/res line while also consulting the figures below:

Over the 8 weeks, the following Avg SL's were applied:

USDJPY - 65 pips
EURJPY - 93 pips
CHFJPY - 54 pips
GBPJPY - 137 pips (this pair has me concerned atm)
AUDJPY - 62 pips
AUDUSD - 48 pips

As far as I'm concerned I am just starting my forward testing phase. With real $$'s on the line I see my self reacting differently. Time will tell.

Cheers,
Art...
Attached Image
Hi Art,

Thanks for sharing your Fozzy adventure.
After forward testing fozzy I i'm about to go live on velocityfx.

I still have to wait a week or two to meet my own rule of forward testing before going live.

Cheers,

Z
Hello Art...

It's enjoyable for me to follow your "adventure", keep up the good work. I'd like to share an observation and opinion without criticizing what you are doing. Your recent successes with the Yen currency pairs may be due in part to all the recent Yen price action. Such action and the resultant Fozzy generated trades can be cyclical. After trading the Fozzy method for about six months, I have seen this happen before. In the near future the Yen currency pairs may go "flat" or generate less profitable or unprofitable trades. This is one of the reasons I look at and potentially trade 19 pairs. There are cycles and if you want to maximize the Fozzy method and capture the very best trades, this phenomenom needs to be considered. The pairs that work best this week or this month, may not next week or next month. Your approach to trading the Fozzy method needs to be flexible to compensate for a changing market environment. JMO!

Quoting Artamon
G'day all,

Firstly, thanks for the comments.

Attached you will find a list of pairs, the trades and the results. This is over the 8 weeks I forward tested the EA. I used v2.2 of the EA. As a consequence of the results, for starters I will only be trading the pairs I have marked in green (ie. AUDUSD, AUDJPY, CHFJPY, EURJPY, GBPJPY, USDJPY). It's very yen-centric I know, but they have been the best performers. There were a couple of others I considered but I didn't want to get overwhelmed when just starting out. If everything goes to plan I will add them later.

I am using v2.2 EA to get me into the trade (using original Fozzy rules but with 0.7x ATR SL). From there I will endeavour NOT to mess with the trade and let it do what it's supposed to do. However, I will be checking where it is in relation to the Vegas tunnel and Daily PP. If I don't like the trade I will not take it. I'm all for letting the EA run, but not at the expense of my account balance!

With the recent huge ranges some pairs give me a SL in excess of 100 which I'm just not comfortable with. When this happens I will reduce the SL to be a little bit past the Daily support/res line while also consulting the figures below:

Over the 8 weeks, the following Avg SL's were applied:

USDJPY - 65 pips
EURJPY - 93 pips
CHFJPY - 54 pips
GBPJPY - 137 pips (this pair has me concerned atm)
AUDJPY - 62 pips
AUDUSD - 48 pips

As far as I'm concerned I am just starting my forward testing phase. With real $$'s on the line I see my self reacting differently. Time will tell.

Cheers,
Art...
G'day BB,

Quoting BeachBum
Hello Art...
It's enjoyable for me to follow your "adventure", keep up the good work. I'd like to share an observation and opinion without criticizing what you are doing. Your recent successes with the Yen currency pairs may be due in part to all the recent Yen price action. Such action and the resultant Fozzy generated trades can be cyclical. After trading the Fozzy method for about six months, I have seen this happen before. In the near future the Yen currency pairs may go "flat" or generate less profitable or unprofitable trades. This is one of the reasons I look at and potentially trade 19 pairs. There are cycles and if you want to maximize the Fozzy method and capture the very best trades, this phenomenom needs to be considered. The pairs that work best this week or this month, may not next week or next month. Your approach to trading the Fozzy method needs to be flexible to compensate for a changing market environment. JMO!
I had thought about following all the same pairs as I have been doing in the forward test, but I wanted to avoid being in too many trades at one time, hence my shortlist. I suppose I was scared of taking too much on too quickly. But, you are correct though. For all I know I may have culled the pairs that will move for the next 4 weeks and be my best performers. Or next 3 months. I cannot afford to cripple my system so severely.

Thanks for the feedback. It's much appreciated.

Cheers,
Art...
Quoting BeachBum
Hello Art...

This is one of the reasons I look at and potentially trade 19 pairs.
BB, wowww..... you are amazing!! i think you are right on the cycle. Hmm, should gain more pips before trading 19 pairs like you
Artamon and turin0107....

Thanks for the comments! My point is simple: watching ALL the pairs available to trade will help you to learn the Daily Fozzy Method as quickly as is reasonably possible. You don't have to trade them all, or take all the trades you see; but it will help you to learn which trades on which pairs are the best. In time, as your account grows, as does your experience level, you will refine your own version of this sytem in a way that works profitably for you. Patience and persistence will pay off nicely.........
G'day all,

I took the following trade today:

23/3/07 - EURUSD Short @ 1.3331 ; SL @ 1.3376 ; TP1 @ 1.3291 ; TP2 @ 1.3201

I amended TP2 & exit to 1.3230 (just above the Vegas daily tunnel)

Cheers,
Art...
Consistently trading exotics can devastate you with spreads.... What will you do to overcome this issue?

Thanks.

Quoting BeachBum
This is one of the reasons I look at and potentially trade 19 pairs.
Paying the spread on ANY trade is something I consider to be "the cost of doing business." Because the Fozzy method is profitable when used properly on ALL currency pairs, I am willing to pay the spread on "exotic" pairs for the sole purpose of profiting from a trade. Many years of owning my own business(es) has taught me you have to spend $$$ to make $$$, hence the above reference. HTH!

Quoting tdion
Consistently trading exotics can devastate you with spreads.... What will you do to overcome this issue?

Thanks.
Quoting Artamon
G'day all,
I took the following trade today:
23/3/07 - EURUSD Short @ 1.3331 ; SL @ 1.3376 ; TP1 @ 1.3291 ; TP2 @ 1.3201
I amended TP2 & exit to 1.3230 (just above the Vegas daily tunnel)
TP1 hit @ 1.3291 (+40)
SL moved to BE

Cheers,
Art...
G'day all,

Quoting tdion
Consistently trading exotics can devastate you with spreads.... What will you do to overcome this issue?
While I'm but an infant in the world of FX, when you're talking systems that work on the daily timeframe (or higher) I believe that the spread is much less of an issue. The way I see it (and I stand to be shot down in flames by my real world experiences) if the spread is 10 pips and i make 11 pips then I am successful. Of course, longer term I want to be banking far more than the spread, but I think you understand what I'm getting at.

Cheers,
Art...
Quoting Artamon
G'day all,


While I'm but an infant in the world of FX, when you're talking systems that work on the daily timeframe (or higher) I believe that the spread is much less of an issue. The way I see it (and I stand to be shot down in flames by my real world experiences) if the spread is 10 pips and i make 11 pips then I am successful. Of course, longer term I want to be banking far more than the spread, but I think you understand what I'm getting at..........and I couldn't agree more!

Cheers,
Art...
.
beach, may i know which exotics you are trading fozzy?

and also when a particular pair goes off fozzy, do you continue trading that pair, maybe with reduced lots, or stay off trading till it behaves itself



Quoting BeachBum
Paying the spread on ANY trade is something I consider to be "the cost of doing business." Because the Fozzy method is profitable when used properly on ALL currency pairs, I am willing to pay the spread on "exotic" pairs for the sole purpose of profiting from a trade. Many years of owning my own business(es) has taught me you have to spend $$$ to make $$$, hence the above reference. HTH!
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